Vancouver, British Columbia--(Newsfile Corp. - August 21, 2018) - Orla Mining Ltd. (TSXV: OLA) ("Orla" or the "Company") is pleased to report that drilling in the Caballito copper-gold zone at its wholly owned Cerro Quema project in Panama has intersected copper and gold values in holes drilled in the eastern part of the zone, including hole CQDH18-169 that intersected 134.0 metres averaging 0.62% copper and 0.14 gram per tonne ("g/t") gold.
Drilling results previously reported from Caballito were mostly from the western side of a 650 to 800 metre-long, 350 to 400 metre-wide, northwest-southeast trending chargeability anomaly. Six of the seven holes reported herein were drilled to test the eastern part of this anomaly. As predicted by the less pronounced resistivity lows in the east as compared to the west, overall sulphide content returned lower values on the east side; however, all six holes intersected copper and gold mineralization. The most north-easterly hole drilled at Caballito to date, CQDH18-169, intersected 134.0 metres at 0.62% copper and 0.14 g/t gold from 128.0 to 262.0 metres. Hole CQDH18-167, drilled from the same pad, intersected the zone 50 metres to the southeast with 101.7 metres at 0.27% copper and 0.10 g/t gold from 134.5 to 236.2 metres. Both intercepts have higher arsenic associated with the copper than intercepts in the western part of Caballito, indicating a mixture of earlier enargite-dominate mineralization cut by the lower arsenic event.
Holes CQDH18-170 and 171, drilled from the same pad in the central-eastern part of the zone, showed weaker mineralization with CQDH18-170 having the wider intercept of 28.5 metres at 0.30% copper and 0.30 g/t gold from 25.5 to 54.0 meters. Hole CQDH18-166 intersected 14.2 metres at 0.32% copper and 0.31 g/t gold from 56.8 to 71.0 metres followed by 65.2 metres at 0.83% copper and 0.30 g/t gold from 80.8 to 146.0 metres, showing mineralization increases in the southeast part of the zone. Mineralization in hole 166 has a mix of higher and lower arsenic associated with copper.
The furthest southeast hole, CQDH18-165, intersected 22.1 metres at 0.52% copper and 0.27 g/t gold from 56.7 to 78.8 metres. Mineralization in hole 165 is very low in arsenic.
CQDH18-168 was drilled to the southwest from the same pad as CQDH18-167 and 169. It crossed a projected fault that appears to displace mineralization to the northeast of the Caballito zone.
The Caballito zone is only one third of a trend where there is evidence of similar copper-gold mineralization. The focus is now to test the rest of this trend for other potential zones with the intensity of mineralization seen at Caballito. Drilling continues at Sombrero, directly north of Caballito. The extension to the induced polarization (IP) survey northward through the Quemita area is now complete and results will be used as an exploration guide for copper-gold mineralization under the oxide reserve.
Table of Drill Holes released
| Hole ID | Zone | East (m) | North (m) | Azimuth | Dip | Depth | Intercepts | ||||
| From (m) | To (m) | Width (m) | Au g/t | Cu % | |||||||
| CQDH-18-165 | Caballito | 554642 | 834604 | 90 | -60 | 231.0 | 36.0 | 45.0 | 9.0 | 0.92 | 0.19 |
| 56.7 | 78.8 | 22.1 | 0.27 | 0.52 | |||||||
| CQDH-18-166 | Caballito | 554650 | 834850 | 250 | -65 | 285.0 | 56.8 | 71.0 | 14.2 | 0.31 | 0.32 |
| 80.8 | 146.0 | 65.2 | 0.30 | 0.83 | |||||||
| including | 81.3 | 93.0 | 11.7 | 0.28 | 2.38 | ||||||
| CQDH-18-167 | Idaida | 554155 | 835144 | 90 | -50 | 295.5 | 134.5 | 236.2 | 101.7 | 0.10 | 0.27 |
| including | 223.5 | 234.0 | 10.5 | 0.16 | 0.76 | ||||||
| CQDH-18-168 | Idaida | 554151 | 835146 | 225 | -50 | 250.5 | No significant intercept | ||||
| CQDH-18-169 | Idaida | 554153 | 835145 | 60 | -50 | 300.0 | 128.0 | 262.0 | 134.0 | 0.14 | 0.62 |
| CQDH-18-170 | Idaida | 554498 | 834911 | 90 | -45 | 232.5 | 25.5 | 54.0 | 28.5 | 0.30 | 0.30 |
| CQDH-18-171 | Idaida | 554498 | 834911 | 90 | -70 | 201.0 | 79.9 | 84.5 | 4.6 | 0.12 | 0.94 |
| 130.5 | 135.0 | 4.5 | 0.13 | 1.07 | |||||||
Footnote:
1. All gold and copper values are uncut except for hole CQDH-18-160 where a 7.0% and a 36.0% copper assays were cut to 3.4% (third highest assay)
2. Widths are shown as intercepted widths
3. Drill results were reviewed and approved by Hans Smit, P.Geo., Chief Operating Officer at Orla Mining Ltd.
4. Data as of August 21, 2018
At Caballito, mineralization is controlled by both high angle structures and shallow dipping lithology. Therefore, the true widths of intersections are difficult to determine.
Quality Control Protocols
All gold results were obtained by ALS Minerals (Au-AA23) using fire assay fusion and an atomic absorption spectroscopy finish. All samples are also analyzed for multi-elements, including silver and copper, using an Aqua Regia (ME-ICP41) method at ALS Laboratories in Peru. Samples with copper values in excess of 1% by ICP analysis are re-run with Cu AA46 aqua regia and atomic absorption analysis. Drill program design, Quality Assurance/Quality Control and interpretation of results are performed by qualified persons employing a Quality Assurance/Quality Control program consistent with National Instrument ("NI") 43-101 and industry best practices. Standards, blanks and duplicates are included approximately one every 25 samples for Quality Assurance/Quality Control purposes by the Company as well as the lab. Approximately 5% of sample pulps are sent to a secondary laboratory for check assays. The HQ diameter core is halved with a diamond saw.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Hans Smit, P.Geo., Chief Operating Officer of Orla Mining Ltd., who is the Qualified Person for the technical information in this news release under NI 43-101 standards.
Figure 1: Cerro Quema Project map can be found on Orla's website at the following link: Cerro Quema Map
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About Orla Mining Ltd.
Orla is developing the Camino Rojo Project, an advanced gold and silver open-pit and heap leach project, located in Zacatecas State, Central Mexico. The project is 100% owned and covers over 200,000 hectares. Access and infrastructure is excellent with a paved highway and powerline nearby. A NI 43-101 Technical Report on Camino Rojo dated June 19, 2018, is available on SEDAR under the Company's profile. Orla also owns 100% of the Cerro Quema Project in Panama which includes a near-term gold production scenario and various exploration targets. Cerro Quema's 14,800-hectare concession is close to infrastructure with easy access to site and strong community support. The Cerro Quema Project is currently in the last stage of the permitting process for a proposed open pit mine and gold heap leach operation. Please refer to the "Cerro Quema Project - Pre-feasibility Study on the La Pava and Quemita Oxide Gold Deposits" dated August 15, 2014, which is available on SEDAR.
Forward-looking Statements
This news release contains certain "forward-looking statements" within the meaning of Canadian and United States securities legislation, including, without limitation, statements with respect to the results of exploration and planned exploration programs, the potential for discovery of additional mineral resources and the Company's objectives and strategies. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release, including without limitation, assumptions that the Company's activities will be in accordance with the Company's public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of preliminary economic assessments, drill results and the estimation of mineral resources; and risks associated with executing the Company's objectives and strategies, including costs and expenses. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
On behalf of the Board of Directors,
Marc Prefontaine, M.Sc., P.Geo.,
President & Chief Executive Officer
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